Corporate Governance

Ever since the financial crisis, consumer confidence has labored to regain strength, and spending has been correspondingly subpar. So it’s not surprising that retailers have been extremely reluctant to make big capital outlays. But now there are signs that consumers are loosening their purse strings and, as they do, momentum is building among retailers to renew capital spending on certain projects.

Total losses attributed to retail shrinkage hit $34.5 billion last year, “positioning retail crime as the largest form of property crime,” according to Dr. Richard Hollinger, professor of criminology, law and society, University of Florida, Gainesville, Fla. And it shows no signs of easing anytime soon. Indeed, the rate of shrink remains on a five-year climb, according to the Loss Prevention Research Council (LPRC), Gainesville, Fla.

When UGG Australia began evaluating how shoppers wanted to engage with its brand, the footwear company — best known for its popular sheepskin boots — decided to augment its wholesale channel and digital presence with freestanding brick-and-mortar stores.

“Retail [freestanding stores] allows Deckers to showcase the UGG product in ways that many of our partners may be unable [to do],” said Yul Vanek, VP information technology for Deckers Outdoor, the Goleta, Calif.-based parent of UGG, Teva and other banners.

Retail chains are keeping a sharp eye on IT solutions that will deliver a fast return on investment and streamline business operations. A step in the right direction is to transition a legacy-based applications to the cloud, but a lack of understanding among the corporate hierarchy can slow efforts.

At the back of the new Ollie’s Bargain Outlet in Reading, Pa., is a self-serve café setup with a sign that proclaims: “The Pot’s Always On. Have a free cup of coffee on us, and if you like, use two sugars … it’s been a pretty good year!”

From the sounds of things, there hasn’t been a bad year since the first Ollie’s opened in Mechanicsburg, Pa., in 1982.

By Chris Donnelly, managing director, Accenture Retail

Ahead of the holidays, 56% of U.S. consumers told us that they expected to ‘showroom’ as they bought gifts this year — underlining the threat of online pure play retailers to the success, and even existence, of traditional retailers. However, traditional retailers can compete and even win this battle.

Generally speaking, I’m not big on trend forecasts. Maybe it’s because there are so many of them, particularly at this time of the year. They all seem to blend together into a mass of predictions and statistics.

Wal-Mart Stores, Inc., president and CEO Mike Duke claims to love working for a company where success and size have resulted in high expectations, but that love affair may be ending in 2013.

Walmart on Friday wrapped up its 12 Days of Giving campaign with a $70,000 donation of warm clothing to 14 non-profits groups.

One of the organizations selected to receive a donation, the Assistance League of Yuma, serves its community by using proceeds from their thrift store to provide clothing, shoes, hats and more to children in need.　Operation School Bell allows the organization to bring groups of students from rural schools twice a year to get clothing.

Mohawk Industries plans to acquire leading ceramic tile manufacturer The Marazzi Group.

The $1.5 billion acquisition will make Mohawk, a flooring industry leader best known for carpeting, the world leader in ceramic tile, according to the company. The Marazzi Group is said to be the leading manufacturer and marketer of ceramic tile in all its major geographies, including Russia, the United States, Italy, France and Spain, with 2011 revenues of nearly $1.2 billion. The deal is expected to close in the first quarter of 2013.